Zimbabwe is on the verge of being re-admitted into the London Bullion Market Association (LBMA) with revelations that negotiations between the government and the authorities at the largest gold trading centre have reached advanced stages.
The last three years have seen the country managing to satisfy the prerequisites for re-admission into the LBMA which stipulates an output of 10 tonnes of the yellow metal for three consecutive years.
Zimbabwe’s gold production has been impressive as reflected by the double figures in production where the country recorded an annual output of 24.8 tonnes last year improving from 21.1 tonnes realised in the prior year.
Indications on ground are pointing to the reality of Zimbabwe’s re-entry into the largest gold trading centre after almost a ten year sabbatical.
Getting back into this market carries with it many benefits for the country among them being the cushioning against price shocks of the commodity on the international market.
The Chamber of Mines is buoyant of the finalisation of the re-accreditation process which is pointing to a positive outcome.
Zimbabwe had dropped out of the association in 2008 after a drastic production decline of the yellow metal to 3.5 tonnes, which fell outside the stipulated requirements of the association, but with the production levels looking well set to hit above 26 tonnes this year, the mining sector may be able to achieve the 1999 record figure of 27 tonnes of the precious commodity.